A securities class action suit was filed against a regenerative medical solutions provider following allegations that the company and some of its officers failed to follow generally accepted accounting practices and subsequently damaged investors’ interests.
The lawsuit against Osiris Therapeutics Inc. was filed in the U.S. District Court for the Southern District of New York on behalf of investors who purchased shares in the company during the class period between May 12, 2014 and Nov. 16, 2015, according to a press release. The company researches, develops and markets biosurgery solutions with a focus on orthopedics, cartilage recovery and wound care.
“The lawsuit claims Osiris and its investors lost millions of dollars.”
The class action filing alleges that the defendants made materially false and misleading statements about Osiris’ business, operations and prospects. The lawsuit claims that the company’s alleged failure to follow generally accepted accounting practices caused the company and its investors to lose millions of dollars. The complaint explained that on Nov. 16, 2015, Osiris disclosed that it was correcting revenue recognition for three contracts.
Product revenues were reduced by $1.8 million for the first quarter of 2015, decreased by $1 million in the second quarter and increased by $0.8 million for the third quarter. In addition, product revenues for 2014 were cut down by $1.1 million. These changes ultimately lowered the combined revenue from all three by $3.1 million. In addition, the alteration moved about $3.9 million in sales to different quarters.
On news of the corrections, Osiris’ stock fell $3.01 per share, or more than 21.5 percent, to close at $10.97 per share on Nov. 17, 2015.
For more information on this case or other class action litigations, please contact Adam Foulke at 203-987-4949 or info@battea.com.